I've generally thought any form of naked shorting was illegal.
Am I out in left field...in my belief that naked shorting generally only happens on foreign exchanges? And in OTC type stocks?
“Am I out in left field...in my belief that naked shorting generally only happens on foreign exchanges? And in OTC type stocks?
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Hard to say, but I suspect that few would naked short a Blue Chip as they typically don’t offer much gain in a short. If they did, I suspect they would be naked shorted, and I believe that is the only reason for the SEC announcement on naked shorts as we are watching Fortune 1000 stocks take a dive.
See Post #75.
Codetoad is parroting an SEC hack that was propagandizing from 2006 when they thought they could pull it over on the public.
Naked shorting of any form IS ILLEGAL.
Because naked shorting is the act of selling short with the knowledge that the shares sold do not in fact exist. ‘With the knowledge’ goes to motive and intent.
A market maker must have a high, very high expectation that the shares can be located and must deliver in a tight window. this is not the same as naked shorting which is undefined in the SEC regulations. See the link in Post #75.